Hingham MA Short Sales

Hingham MA Short Sales

As a home buyer looking for value in the purchase of real estate a "short sale" may be your best option. Buying a Hingham MA short sale is a difficult and often a frustrating process. To have success, you must work with qualified professionals and understand the process. Expert advice can be provided by real estate agents, attorneys, mortgage brokers, bankers and home inspectors. To view all property for sale go to Hingham MA homes for sale for a mapped based search.

What is a Short Sale?

Homeowners that have financial hardships may pursue a short sale as a solution to foreclosure. Their goal is to negotiate future financial liabilities and preserve their credit. In MA, the laws governing foreclosures provide incentives for lenders to work with homeowners that have financial hardships. The foreclosure process takes time and money and may prove to be more costly to the lender. In April of 2010, the government enacted legislation under the HAFA (Home Affordable Alternatives Program) which provided homeowners and lenders with a streamlined process and incentives to negotiate short sales.

The first step to a successful Hingham MA short sale transaction requires the negotiation of an acceptable contract with the Seller subject to lender approval with no guarantees that your offer will be approved. In order to prevent foreclosure, the Seller is under a timeline to "sell short" and must have an offer that meets guidelines for lender approval. The following tips will increase your chances of negotiating a successful Hingham MA short sale transaction:

Are You a Qualified Buyer?

As a home buyer you must provide evidence that you qualify to purchase the property. The Seller is unable to accept your offer without a valid credit approval as the lender will reject the contract. Obtain a credit approval from a reputable lender or if a cash buyer provide proof of funds. The approval must not contain conditions such as selling an existing property as this is an issue for the lender.

Finding Listings That Qualify

Homeowners in financial distress typically have a limited amount of time to find a qualified buyer. If they have not connected with their lender(s) and started the process, there may not be sufficient time to affect a sale. Your real estate agent can identify properties that you may consider. Information they will obtain includes: Has the homeowner compiled the necessary documents for the lender approval package? How many liens are on the property? If more than one, what are they? Is there a plan to obtain releases from all the lien-holders?

Don't take yourself out of the market for a property that has no chance of closing. Visit Hingham MA real estate for community information that will assist you in evaluating property for sale.

The Purchase and Sales Agreement

The first step is to negotiate a contract with the Seller and you will be competing against other buyersReal estate agents often list the property at a low value to encourage multiple offers. Others offer the property at the bottom of fair market value. Price, terms and your qualifications will be the deciding factors for Seller acceptance. Sellers and lenders prefer "clean" contracts without contingencies.

Earnest Money - Sellers may be hesitant to accept your offer with a low deposit. A buyer that has little to lose can easily pursue another property and "walk away". Offering the Seller a strong deposit indicates that you are serious about buying the property.

Home Inspection - It is customary to conduct the home inspection prior to submitting to the lender. A seller may not want to take the risk of conducting the inspection after lender approval. If they do, they risk losing the buyer on the inspection issues and will not have time to sell the property prior to foreclosure.

Flexible Closing Date - Lenders often approve short sales with quick closings. You must be prepared to comply if you want to consummate the sale.

Subsequent Offers - The listing agent must submit all offers to the Seller. A contract with better terms and conditions may have a better chance of being approved by the lender. The lender will give the Seller direction as to submitting additional offers. In addition, arrange for your lender to lock your interest rate for your mortgage so that you qualify whenever the closing is required.

Contract Approval by the Lender

Lenders have no set formula for determining the value of the property other than to substantiate values through due diligence. However, Freddie Mac (one of the largest secondary market lenders) has a target sales price of 88% of one or more broker price opinions (BOP). Have realistic expectations of the approval process as it may take between 30-180 days and property values can change.

Virtual Homes Real Estate agents can assist you with Hingham Massachusetts short sales, foreclosures and MLS listings currently on the market. Please call us at 800-856-2479.